The managers of Price Company are considering replacing an existing plece of equipment, and have collected the following information: The new plece of equipment will have a cost of $2,400,000, and it will be depreciated on a straight-line basis over a period of five a years. The old machine is also being depreciated on a straight-line basis. It has a book value of $200,000 (at year C) and three more years of depreciation left ($50,000 per year). The new equipment will have a salvage value of $0 at the end of the project's life (year 5). The old machine hos a current salvage value (at year ) of $300,000 Replacing the old machine will require an investment in net working capital (NWC) of $20,000 that will be recovered at the end of the project's life (years). The new machine is more efficient, so the incrementat increase in operating income before taxes will increase by a total of $400,000 in each of the next five years (Years 1-5). (Hint: This value represents the difference between the revenues and operating costs (including depreciation expense) generated using the new equipment and that earned using the old equipment.) The project's required rate of return is 13% . The company's annud tax rate is 35%. Complete the following table and compute the incremental cash flows associated with the replacement of the old equipment with the new equipment, Year o Year 1 Year 2 Year Year 4 Years Initial investment ($2,400,000 $400,000 Oper inc before tax Taxes ) New depreciation Old depreciation Net salvage value Networking capital Return of net working capital Total net cash flow $740,000 The net present value (NPV) of this replacement project is